QVCC FY 2017 Earnings Report — QVC, Inc. 6.250% Senior Secured Revenue & Financial Results | Market Cap Arena

QVC, Inc. 6.250% Senior SecuredQVCC

FY 2017 Earnings

Reported March 1, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$8.8B	—	$8.7B	—	1.0%
Op. Income	$1.3B	—	$1.2B	—	12.1%
Gross Margin	36.2%	—	36.2%	—	-0.0pp
Net Margin	10.3%	—	7.0%	—	3.3pp
EPS (Diluted)	$0.00	—	$0.00	—	NaN%
Free Cash Flow	$1.1B	—	$999M	—	5.1%

Revenue Flow

Item	Amount
REVENUE	$8.8B
Cost of Revenue	$5.6B
GROSS PROFIT	$3.2B
R&D Expenses	$0
Selling & Marketing	$86M
General & Administrative	$1.2B
SG&A Expenses	$1.3B
Other Expenses	$0
Operating Expenses	$1.9B
Cost & Expenses	$7.5B
OPERATING INCOME	$1.3B
Interest Income	$0
Interest Expense	$214M
Other Income/Expenses	-$261M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$139M
Net Income from Continuing Ops	$947M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$901M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$901M
D&A	$426M
EBIT	$1.3B
EBITDA	$1.8B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$8.8B
Cost of Revenue	$5.6B
GROSS PROFIT	$3.2B
R&D Expenses	$0
Selling & Marketing	$86M
General & Administrative	$1.2B
SG&A Expenses	$1.3B
Other Expenses	$0
Operating Expenses	$1.9B
Cost & Expenses	$7.5B
OPERATING INCOME	$1.3B
Interest Income	$0
Interest Expense	$214M
Other Income/Expenses	-$261M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$139M
Net Income from Continuing Ops	$947M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$901M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$901M
D&A	$426M
EBIT	$1.3B
EBITDA	$1.8B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$901M
Depreciation & Amortization	$426M
Stock-Based Compensation	$39M
Deferred Income Tax	$0
Other Non-Cash Items	-$127M
Change in Working Capital	-$37M
OPERATING CASH FLOW	$1.2B
Capital Expenditure	-$152M
Acquisitions (Net)	$22M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$51M
NET CASH FROM INVESTING	-$181M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$866M
Other Financing Activities	-$172M
NET CASH FROM FINANCING	-$1.0B
FREE CASH FLOW	$1.1B
Net Change in Cash	-$4M

Balance Sheet

Item	Amount
Cash & Equivalents	$282M
Short-Term Investments	$0
Net Receivables	$1.6B
Inventory	$1.2B
Other Current Assets	$88M
TOTAL CURRENT ASSETS	$3.2B
PP&E (Net)	$1.2B
Goodwill	$6.0B
Intangible Assets	$3.8B
Long-Term Investments	$7M
Tax Assets	$52M
Other Non-Current Assets	$23M
TOTAL NON-CURRENT ASSETS	$11.1B
TOTAL ASSETS	$14.3B
Account Payables	$958M
Short-Term Debt	$17M
Deferred Revenue	$0
Other Current Liabilities	$590M
TOTAL CURRENT LIABILITIES	$2.0B
Long-Term Debt	$5.6B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$858M
TOTAL NON-CURRENT LIABILITIES	$6.5B
TOTAL LIABILITIES	$8.5B
Common Stock	$0
Additional Paid-In Capital	$8.6B
Retained Earnings	-$2.8B
Treasury Stock	$0
Accum. Other Comp. Income	-$93M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.7B
Minority Interest	$110M
TOTAL EQUITY	$5.8B
TOTAL LIABILITIES & EQUITY	$14.3B
Total Debt	$5.7B
Net Debt	$5.4B